Strategies to implement total quality management in small scale rural agroindustry to enhance Indonesian pepper competitiveness

Abstract

The competitiveness of Indonesian pepper in the global market shows a decreasing trend. It is indicated by the decrease in the market and low product quality. Additionally, the consumer countries’ standard requirements are also stricter, especially quality, sanitary, and safety. Microorganism contamination is one issue of pepper product safety. This condition is due to improper implementation of Total Quality Management (TQM) as a strategic resource that can generate competitiveness by achieving the required quality and providing the agroindustry with sustainable competitive advantages. This study aims to map quality management practice and formulate strategies to implement the TQM in the pepper agroindustry. The analysis used Quality Management Mapping and Interpretative Structural Modeling (ISM). Quality Management Mapping was used in analyzing constraints, and ISM was used to analyze the internal and external elements. The pepper agroindustry’s quality management is traditional management, which has not to support the TQM implementation. Implementation of TQM in pepper agroindustry faces constraints related to training and preparation; understanding of TQM; TQM adoption within the organization; resistance to learn and change; learning organization; resources available; measurement of quality improvement; access to data and results; and attention to customers. Internal and external factors construct strategies to implement TQM. Internal-based strategies include training on the methods and concepts of quality, adopting technology, and using appropriate methodology and tools. The main strategy as external support is creating incentives linked to quality goods to support farmers shifting mindset and improving product quality.